ITEM:

CONSENT CALENDAR

8.

RECEIVE AND FILE FOURTH QUARTER FINANCIAL ACTIVITY FOR FISCAL YEAR 2006-07

Meeting Date:

From:

David A. Berger,

Program/

N/A

General Manager

Line Item No.:

Prepared By:

Rick Dickhaut

Cost Estimate:

N/A

## Committee Recommendation:The Administrative Committee reviewed this item on October 4, 2007 and recommended approval.

CEQA Compliance:  N/A

SUMMARY:  June 30, 2007 marked the conclusion of Fiscal Year 2006-07.  Bar graphs comparing budgeted and actual year-to-date revenues and expenditures for the year are included as Exhibits 8-A and 8-B.  Exhibit 8-C presents the same information in a table format.  Please note that the final numbers for the fiscal year are subject to change as additional entries and/or adjustments may be made during the annual audit process which is currently under way.   The following comments summarize District staff's observations regarding the budget:

REVENUES

Revenues received during the fiscal year totaled $5,203,855, which represented 62% of the$8,422,200 revenue budget.  Variances within the revenue budget were as follows:

• Permit revenues in the amount of $299,314 were about 9% over budget. • Connection charges in the amount of$637,062 were 16% over the amount budgeted due to continued higher than anticipated activity.
• Interest revenues of $116,511 for the year were approximately 46% over budget due primarily to increased interest rates and higher than anticipated reserves. • User fee revenues in the amount of$2,572,154 were just 2% less than the amount budgeted.
• Tax revenues received during the year totaled $1,280,201 or 1% more than the budgeted amount. • Grant receipts totaled$144,140, or 32% of budget, because most of the budgeted Proposition 50 grant funds will not be receivable until fiscal year 2007-08.
• Reimbursements of $95,946 were only 17% of the amount budgeted for the year, mostly due to deferred implementation of increased conservation measures caused by the late decision by the California Public Utilities Commission on California American Water’s 2006 rate increase. • Debt service proceeds budgeted at$2,550,000, were not received during the fiscal year because the debt issuance to fund the cost of the Aquifer Storage and Recovery Project’s expansion was delayed to Fiscal Year 2007-08.
• The “Other” category revenues were $58,527 or about 12% over budget due to unanticipated miscellaneous revenues. EXPENDITURES Expenditures during the fiscal year totaled$5,233,215, which represented 62% of the $8,422,200 expenditure budget. Variances within the expenditure budget were as follows: • Personnel expenditures of$2,886,398 were 1% less than the budgeted amount.
• Expenditures for supplies and services amounted to $773,686 or about 17% percent under budget. • Capital assets purchases totaled$121,043 or 22% below the budgeted amount.  The procurement of several items in this category, including one replacement vehicle, was deferred to Fiscal Year 2007-08.
• Outlays for Project expenditures were $1,441,305, representing only 35% of the amount budgeted. This was mostly due to some activities related to the Aquifer Storage and Recovery Project expansion II being delayed to fiscal year 2007-08; and expenditures for various new water conservation efforts being deferred due to the previously mentioned delayed decision in the 2006 California American Water rate case. • As mentioned in the revenue section of this report, the anticipated debt issuance for funding the Aquifer Storage and Recovery Project’s expansion did not take place during the fiscal year, therefore, the$126,500 budgeted for Debt Service was not expended.
• The Contingencies/Reserves category, which consisted of a $75,000 contingency budget, had expenditures of only$10,783 during the fiscal year.

### EXHIBITS

8-A      Revenue Graph

8-B      Expenditure Graph

8-C      Revenue and Expenditure Table

U:\staff\word\boardpacket\2007\2007boardpackets\20071015\ConsentCal\08\item8.doc